New Delhi— With a view to providing affordable housing, the finance minister has proposed to provide some concessions in the scheme of Income Tax exemption. The definition of affordable housing has been changed. Now the area of 30 Square Metre in four metropolitan cities and 30 Square Metre for the rest of country will be counted as carpet area instead of built-up area. The completion period has also been extended to 5 years from 3 years. The tax on Notional rental income for builders has been proposed to calculate only after 1 year from the end of the year in which completion certificate is received.
Some changes in Capital Gain taxation for immovable properties have also been proposed to take effect, as holding period reduced for computation of long-term capital gain from three years to two years and base year for counting the cost of property shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property. The basket of financial instrument, in which capital gain can be invested without payment of tax, has also been proposed to be expanded.